Department of Transport Budget 2003/04 to 2005/06 Presentation to Select Committee on Public...

Department of Transport

Budget 2003/04 to 2005/06

Presentation to Select Committee on Public Services (NCOP)

16 April 2003

Contents of Presentation

• Mandate and Structure• Programme purpose and measurable

objectives• Strategic overview and key challenges• Programme Outputs and Budgets 2003/04• Expenditure estimates and trends• Allocations to Public Entities and other State

Departments• Anticipated rollovers to 2003/04

Mandate of NDOT

To facilitate the provision of an affordable, safe and sustainable transport system;

which is responsive to the needs of transport users.

Minister

Director-General

Ministry

Office ofDG

Transport Policy& Regulation

Public Transport & Planning

Land Transport Management

CorporateServices

Land Transport Regulation

Infra-structure

Aviation &MaritimeTransport

TransportPolicy

Transport Planning

PublicTransport

Structure of theDepartment1 April 2003

Corporate Services

• Purpose:

Provides for policy formulation by the Minister and the Director-General, information technology (IT), financial management, personnel and provisioning administration, and legal and other office support services.

Land Transport Management

• Purpose:Develops and maintains an overall transport infrastructure strategic plan for all modes of transport and provides regulations through the provision of national standards and guidelines.

• Measurable Objective:To develop and co-ordinate an integrated transport infrastructure framework, and promote an operational environment which improves the safety, quality, efficiency, and economic sustainability of operations whilst reducing the environmental impact of transport.

Transport Policy and Regulation

• Purpose:

Develops and promotes policy for all modes of transport and regulates aviation and maritime sectors.

• Measurable Objective:

To promote, enforce, and monitor the implementation and performance of policy and regulations for transport operations, in order to achieve a competitive, equitable, safe, efficient and sustainable transport system.

Public Transport and Planning

• Purpose:

Manages public transport operations and planning.

• Measurable Objective:

To plan, regulate, monitor, and review public transport operations, in order to achieve an affordable, competitive, accountable and sustainable public transport system.

Strategic Overview

• Public Transport• Infrastructure

– Rail, Roads, Ports, Airports

• Safety– Rail, Roads, Aviation and Maritime Safety

• Oversight over Public Entities• SADC• NEPAD

Key Priorities and Challenges• Road Safety (The Road to Safety Strategy)• Road Accident Fund (The Satchwell Report)• Transport infrastructure• Public Transport (taxi recap. and subsidies)• Rail Safety & Security• Transport Planning (Integrated Transport Plans)• Aviation & Maritime policy review• Freight Transport (Logistical chains)• Intergovernmental Relations (MINCOM/COTO)• An effective regulatory framework for transport public

entities (Corporate governance and management)

Key Priorities for 2003/04• John Ross Highway• Rural Roads• Taxi Recapitalisation• Investment in Rail Infrastructure and Rolling Stock• King Shaka Airport• Support initiatives around concessioning of Durban

Container Terminal and construction of Coega Port• Upgrade of access roads to Border Posts• Transformation of Public Transport Subsidies• Rail Safety and Security• Overloading Control

Current Pressure Points

• Road Accidents

• Bus and Rail Subsidies

• Backlog on Infrastructure Funding

• Conversion to Credit Card License

• Governance of Transport Public Entities

• Intergovernmental Relations (MINCOM)

• Operationalisation of RTMC

• Establishment of the RTIA (AARTO)

• Safety and Security of Transport Infrastructure

Outputs & Budgets: Corporate ServicesSub Programme Output R million

2003/04

Minister Ministerial duties 0,7

ManagementOffice of DG;

Internal Audit; International Relations

Conduct overall management of the Department

13,2

Corporate Support ServicesHR; IT; Procurement; Finance; Legal; Communication; Capacity Develop.;

GMT; Secretariat

Sound Human Resource management

Sound Procurement and Financial management

IT systems in place

Effective Legal and Communication services

Cost effective management of Government’s motor fleet

54,8

Total 68,7

Outputs & Budgets: Land Transport Management

Sub Programme Output R million 2003/04

Infrastructure Develop & promote an infrastructure strategy; funding of national roads

1 285,1

Information Systems Well maintained NATIS and databank 97,6

Standards & Guidelines

Execution of Road Traffic Act; regulate road safety; overloading control

15,0

Land Transport Legislation

Enabling legislative and regulatory environment for road safety and overloading control

1,2

Land Transport Agency oversight

Creation of AARTO agency, development of RTMC and agency oversight

31,6

Road Safety Promotions

Communication, education; implement road safety projects; enhance professionalism in traffic fraternity

23,6

Administration Manage financial and administration services 5,1

Total 1 459,2

Outputs & Budgets: Transport Policy and Regulation


Passenger and Freight Transport Policy Development

Finalise & implement short term accessible transport strategies.

Implement the Railway Safety Regulator Act; finalise various policies and strategies, including BEE, Rural Transport, Intelligent Transport Systems and a Freight Logistics Framework; implement the Environmental Implementation Plan.

18,9

Economic Analysis Establish Economic Analysis unit 2,0

Research & Development

Develop research & data collection programmes and a National Land Transport Information System; manage a National Travel survey

9,5

Air Transport Regulation

Improve levels of aviation safety and security and regulate the aviation environment

18,2


Air Transport Regulation

Improve levels of aviation safety and security and regulate the aviation environment

18,2

Maritime Transport Render effective oil pollution prevention services; promote maritime safety and security and manage a search and rescue facility

91,2

Aviation & Maritime Policy

Develop aviation and maritime policies and regulations

4,0


Total 146,6

Outputs & Budgets: Transport Policy and Regulation (cont.)

Outputs & Budgets: Public Transport and Planning


Bus Operations Bus contracts operated on tendered & negotiated contracts; increase HDI / BEE participation and promote accessible transport

2 044,0

Commuter Rail Combat fare evasion; implement automatic fare collection system; promote accessible stations

2 343,9

Taxi Operations Rollout plan for taxi recapitalisation; facilitate empowerment in the taxi industry

10,0

NLTTA Implementation

Facilitate the implementation of the NLTTA 22,0

Transport Planning Facilitate development of transport plans and the development of infrastructure and development projects in urban areas

41,5


Total 4 484,2

Baseline BudgetsR million 2003/04 2004/05 2005/06

Rail subsidies 2043.8 2228.6 2362,2

Bus subsidies 1894.0 2008.0 2128,5

Roads 1270.6 1240.8 1315,2

Other 415.2 420.8 444,1

Total 5623.6 5898.2 6250,0

Included in BaselineR million 2003/04 2004/05 2005/06

Poverty Relief

- Roads projects

100

Infrastructure

- SA Rail Commuter

Corporation

130 200 212

Total 230 200 212

Note: These amounts as well as public transport subsidies and rail capital allocations are earmarked.

Additional Funds RequestedR million 2003/04 2004/05 2005/06

Infrastructure 981 1 568 2 284

Public Transport 847 993 943

Safety 27 45 54

Institutional Reforms 51 37 47

Total 1 906 2 643 3 328

Additional Funds AllocatedR million 2003/04 2004/05 2005/06

Rail capital 100 100 100

Rail subsidies 200 200 200

Bus subsidies 150 150 150

Railway Safety Regulator

5 10 15

Dangerous goods 6,8 9,2 12

Total 461,8 469,2 477

Allocations from ReprioritisationR million 2003/04 2004/05 2005/06

Infrastructure Planning * 14,4 14,4 15,3

Overloading Control * 10,0 17,9 18,2

Oil Pollution Prevention 7,1 7,6 8,0

Railway Safety Regulator * 5,0 5,0 5,0

Road Traffic Man. Corp. 5,0 7,0 9,0

Aviation & Maritime Pol. * 4,0 4,2 4,5

Maritime Rescue (MRCC) * 3,6 3,9 4,3

Ports Regulator * 2,5 1,5 1,5

Rail Economic Regulator * 2,5 2,0 2,0

Total 54,1 63,5 67,8

* No prior baseline

Total Budget

0

1,000

2,000

3,000

Other 527,0 500,3 523,8 561,6

Roads 1,203,1 1,270,6 1,240,8 1,315,2

Bus 1,846,7 2,044,0 2,158,0 2,278,5

Rail 2,255,4 2,343,8 2,528,6 2,662,2

2002/03 2003/04 2004/05 2005/06

R million

Total 5,832,2 6,158,7 6,451,2 6,817,5

Other Budget Allocations

• Corporate Services– Support Services

• Land Transport Management– NATiS, Road Traffic Management, AARTO, RTMC,

Overloading

• Transport Policy and Regulation– Oil Pollution Prevention, Watchkeeping Services,

Policy Development

• Public Transport and Planning– NLTTA, Taxi, Urban Transport Fund

Budget Breakdown 2003/04R million Amounts Percentages

Rail 2 344 38,05

Bus 2 044 33,19

Roads 1 271 20,64

NATiS 66 1,07

Maritime Safety 70 1,14

Urban Transport Fund 42 0,68

NLTTA 22 0,36

Administration 69 1,12

Land Transport 123 2,00

Tpt Policy & Regulation 77 1,25

Tpt & Planning 31 0,50

Total 6 159 100,0

Discretionary Budget 2003/04R million Amounts Percentages

Administration 69 1,12

Land Transport 123 2,00

Transport Policy & Regulation 77 1,25

Transport & Planning 31 0,50

Total of above 300 4,87

Transfers included above:

Capacity and Policy Development 11,8

Driver’s License Testing Centers 19,2

RTMC and Overloading control 18,5

Railway Safety Regulator 10,0

Aviation & Maritime Agencies 12,7

Taxi Operations 10,0

Remaining Budget 217,8 3,54

Breakdown of the remaining Budget of R 217,8 m:

Personnel Expenditure R 81,3 mAdministrative Expenditure R 35,1 mEquipment R 9,2 mProfessional Services R 92,2 m

Personnel and Administrative Expenditure are mainlynot discretionary while Equipment and ProfessionalServices are mainly discretionary.

Rail38,1%

Bus33,2%

Roads20,6%Other 8,1%

Tpt & Planning

Tpt Pol. & Reg.

Land Transport

Admin

NLTTA

UTF

Maritime Safety

NATiS 13,2%

6,2%

15,4%

24,6%

13,8%

4,4%

8,4%

14,0%

Budget Breakdown 2003/04

Expenditure Trends: NDOT

0

1000

2000

3000

4000

5000

6000

7000

8000

DOT 4062 4099 4937 5832 6159 6451 6818

% increase 0,9 20,4 18,1 5,6 4,7 5,7

2000 2001 2002 2003 2004 2005 2006

R million

2002: Increase in bus subsidies 20%; correction of Roads budget 52%2003: Adjustments budget 9,9%: Allocations for infrastructure R 188m, subsidies R 200m; rollovers R 69m and inflation R 31m

Expenditure TrendsRail, Bus, Roads

0

500

1000

1500

2000

2500

3000

2000 2001 2002 2003 2004 2005 2006

Rail Bus Roads

R million


0

500

1000

1500

2000

2500

3000

2000 2001 2002 2003 2004 2005 2006

Rail Bus Roads

R million

Rail:2003: Additional R146m for rolling stock and rail extensions Additional R160m for subsidies2004 – 2006: Additional subsidies R200m and allocation for rolling stock R100m over the MTEF


0

500

1000

1500

2000

2500

3000

2000 2001 2002 2003 2004 2005 2006

Rail Bus Roads

R million

Bus:2003: Additional R40m for subsidies2004 – 2006: Additional subsidies R150m over the MTEF


0

500

1000

1500

2000

2500

3000

2000 2001 2002 2003 2004 2005 2006

Rail Bus Roads

R million

Roads:2002: Correction of baseline2003: Additional R42m for Border Post access roads2005: Poverty Relief allocation of R100m per year discontinued

Programme Expenditure TrendsExcluding Rail, Bus, Roads

0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006

AdministrationLand TransportTransport Policy & Regulation


R million


0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006



R million

Land Transport:2002: Additional expenditure on NATIS (R21m), DLTC’s (R15m) and RTMC (R3m)2003: Rollovers for AARTO (R17m) and RSR (R6,6m) Increases for Safety promotions (R27m)2004: Increases sustained by new allocations for Overloading Control (R10m), RSR (R10m) and sustained Safety promotions


0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006



R million

Transport Policy and Regulation:2003: Rollovers R&D (R17,5m) and Oil Pollution (R17m) Oil pollution under spent in 2002 (R39m)


0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006



R million

Public Transport and Planning:2002: Increased spending on Taxi process (R7m) and UTF (R16m)2003: Increased allocations for NLTTA implementation (R36m)2004: Reduced allocation for NLTTA implementation (R14m)

Allocations to Public Entities

R’ 000 2003/04 2004/05 2005/06

S.A. Rail Commuter Corporation 2 343 840 2 528 550 2 662 143

S.A. National Roads Agency 1 270 558 1 240 789 1 315 236

Road Accident Fund - - -

Cross Border Road Transport Agency

- - -

S.A. Maritime Safety Authority 6 504 6 894 7 308

S.A. Civil Aviation Authority 5 687 6 028 6 390

Urban Transport Fund 41 532 44 024 46 665

Road Traffic Management Corporation

8 473 10 681 12 902

Airports Company South Africa - - -

Air Traffic and Navigation Services - - -

Railway Safety Regulator 10 000 15 000 20 000

Total 3 686 594 3 851 966 4 070 644

Allocations to Public Entities

R’ 000 2003/04 % of Budget

S.A. Rail Commuter Corporation 2 343 840 38,1

S.A. National Roads Agency 1 270 558 20,6

Road Accident Fund -

Cross Border Road Transport Agency

-

S.A. Maritime Safety Authority 6 504 0,1

S.A. Civil Aviation Authority 5 687 0,1

Urban Transport Fund 41 532 0,7

Road Traffic Management Corporation

8 473 0,1

Airports Company South Africa -

Air Traffic and Navigation Services -

Railway Safety Regulator 10 000 0,2

Total 3 686 594 59,9

Allocations to other spheres of Government

R’ 000 2003/04 2004/05 2005/06

Provinces:

Bus Subsidies 2 044 000 2 158 040 2 278 523

Taxi processes 10 000 10 000 10 600

Driver’s license testing Centres

19 193 9 745 10 330

Overloading control 10 000 17 938 18 249

Provinces and Local Authorities:

Implementation of NLTTA

22 000 23 320 24 719

Local Authorities:

Urban Transport Fund 9 100 - -

Total 2 114 293 2 219 043 2 342 421

Allocations to other spheres of Government

R’ 000 2003/04 % of Budget

Provinces:

Bus Subsidies 2 044 000 33,2

Taxi processes 10 000 0,2

Driver’s license testing Centres

19 193 0,3

Overloading control 10 000 0,2

Provinces and Local Authorities:

Implementation of NLTTA

22 000 0,3

Local Authorities:

Urban Transport Fund 9 100 0,1

Total 2 114 293 34,3

Funding from sources outside of the Medium Term Budget

Source of Funds

Purpose R million 2003/04

Road Accident Fund

Funding made available based on the Arrive Alive Business Plan approved by the Road Accident Fund, Provinces, Department of Transport and the National Treasury

50

Overloading Control Fund

Balance of previous year’s contributions from Provinces. Funds will be spent on overloading control initiatives countrywide and on the development of an overloading control strategy

10

Total 60

Anticipated Rollovers to 2003/04Details R’ 000

Umtata Railway line 28 000

Road Traffic Infringements Agency 17 000

S.A. Rail Commuter Corporation (Debt relief) 16 311

Implementation of National Land Transport Transitional Act 13 532

Taxi process 12 370

National Traffic Information System 7 406

Railway Safety Regulator 6 444

S.A. Civil Aviation Authority 5 500

Cross Border Road Transport Agency 5 000

Non motorised transport project 2 000

Forensic investigation 278

Total 113 841

Savings and under expenditure against budget for 2002/03 122 637

End of Presentation

Department of Transport Budget 2003/04 to 2005/06 Presentation to Select Committee on Public...

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